
Nate
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Nvidia’s China business is evaporating.
The US chip giant on Tuesday disclosed that Washington would now require a licence to export its H20 chips to China. The company expects the move to cost it US$5.5 billion, which includes charges for inventory, purchase commitments and related reserves.
The H20 is a graphics processing unit tailored for the Chinese market after earlier export controls imposed by the administration of former US president Joe Biden. While the H20 is less powerful than Nvidia chips sold outside China, it is still good enough for training and running large language models (LLMs).
Nvidia’s China business was likely to “fall to nearly zero”, Morningstar analyst Brian Colello said in a research note. “We don’t foresee a turnaround any time soon.”
https://www.scmp.com/news..
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www.scmp.com
Nvidia expects US$5.5 billion hit as US targets chips sent to China
Export licences are now required for the company’s H20 artificial intelligence chip, which have been seeing growing Chinese demand.